Arbeitspapier

On Environmental Taxation under Uncertainty

This paper addresses optimal taxation, when the relationship between consumption and environmental damage is uncertain and treated as a random variable by policy makers. The main purpose is to analyze how additional uncertainty about this relationship affects the optimal unit tax on the consumption good that is causing environmental damage. We find that the optimal response to this tax depends on (i) the attitudes towards risk and (ii) how other policy instruments affect the demand for the good that is causing damage to the environment.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 1999:14

Classification
Wirtschaft
Externalities
Information, Knowledge, and Uncertainty: General
Taxation and Subsidies: Efficiency; Optimal Taxation
Renewable Resources and Conservation: General
Subject
Green taxes
Uncertainty
Optimal taxation
Optimale Besteuerung
Ökosteuer
Risiko
Theorie

Event
Geistige Schöpfung
(who)
Blomquist, Sören
Aronsson, Thomas
Event
Veröffentlichung
(who)
Uppsala University, Department of Economics
(where)
Uppsala
(when)
1999

Handle
URN
urn:nbn:se:uu:diva-2460
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Blomquist, Sören
  • Aronsson, Thomas
  • Uppsala University, Department of Economics

Time of origin

  • 1999

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